Domino’s Pizza Group PLC records highest ever sales week as it announces 200 new

Domino’s Pizza Group PLC () said it has recorded its highest-ever sales week and has planned a new strategy to retain customers after a solid performance during the COVID-19 pandemic.

Trading was buoyed by people treating themselves with takeaway dinners while stuck at home during lockdown.

The fast-food chain is targeting total system sales of £1.6-1.9bn per year supported by the opening of an additional 200 new stores.

The firm has had a troubled relationship with its franchisees so it is hoping to win them back with new measures.

It has offered them an enhanced food rebate mechanism to encourage growth, new store incentives, capital investment to boost technology, investment in marketing through data & insights and the establishment of national deals.

“While the engagement has been constructive we do not yet have agreement of the terms of the offer, but we remain hopeful the franchisees will appreciate the mutual benefits its acceptance would yield,” the company said.

The executive team is also to see a rehaul, with a new chief financial officer as well as a new Ireland chief executive to focus on growth in the Republic.

Meanwhile, it remains in discussions to sell the segments in and Switzerland, with the disposal of the Swedish business to complete in May 2021.

In the year to December 27, system sales rose 10% to £1.3bn, while underlying profit before tax rose 2% to £101mln including a one-off charge of £9mln relating to COVID-19 safety measures. Net debt was cut by 26% to £171mln.

The total dividend came in at 9.1p per share with the final distribution to be paid in May.

In a separate announcement, Domino’s Pizza announced a new share repurchase programme valued up to £45mln.

Shares surged 11% to 344.21p on Tuesday morning.